Elon Musk’s net worth has dropped to about $195.6 billion, according to Forbes. Musk’s net worth fell on Tuesday, hitting its lowest level this year.
This is the second time since October. On January 1, 2021, his net worth fell below $200 billion, except for a slight drop to $199 billion in May of this year, as reported by Forbes.
His net worth remains monstrous — and enough to cement his status as the world’s richest man — but Musk’s worth is once again more substantial. In January, his fortune was estimated at $304.2 billion, according to Forbes. At the time, its value had grown by about $32.6 billion as Tesla shares skyrocketed.
Of course, this was before Musk started acquiring Twitter in April. In August, he sold nearly 8 million shares of Tesla — worth $7 billion — as a legal battle with Twitter was about to erupt. Twitter sued Musk to enforce the rules of their acquisition agreement after Musk tried to back out. Musk later hit back, accusing the company of fraud, breach of contract and violation of securities laws.
A judge put the case on hold to close the deal, and last month, Musk officially bought the company for $44 million.
The Twitter takeover caused quite a stir. According to Wedbush analysts, Musk recently sold an additional $4 billion in stock to close the gap in the deal — though he said he’s “done selling Tesla stock.”
And this week, it sold another 19.5 million Tesla shares — worth $3.9 billion — in three days, according to documents filed with the Securities and Exchange Commission, Forbes reported. He has now sold $19.3 billion worth of Tesla stock since April. This, combined with the drop in Tesla’s share price, has contributed to a drop in his net worth.
Not only did Musk lose credibility with investors when he acquired Twitter, but he also drew outrage from the changes he made immediately at the social media company.
Many fear that his changes to the content ban will allow hate speech on the platform.
He also fired senior executives and a large number of employees. And, he introduced “Twitter Blue” — a subscription to a blue tick that will cost users $7.99 a month — as a way to boost revenue.
Musk’s net worth is made up of stock and ownership of six companies he co-founded, including Tesla, SpaceX and Boring Company.
Despite selling a lot of Tesla stock, he still owns $445.6 million worth of Tesla shares, excluding options, according to Forbes.
He also now owns about 82% of Twitter, after taking the company private with the added help of a $12.5 billion loan from a group of major banks, including Morgan Stanley and Bank of America.
He is still far behind the world’s second-richest person, French billionaire Bernard Arnault and his family who owns fashion house LVMH. Their net worth is estimated at $159.8 billion.
The third richest person is Indian billionaire Gautam Adani, who has a net worth of $144.7 billion from infrastructure and commodities. Fourth, Jeff Bezos, founder of Amazon and Blue Origin, is worth $110.7 billion.